The Middle East conflict is causing a spike in wholesale gas prices, which is a major factor in determining UK electricity costs. This could lead to a rise in the Energy Price Cap from July, prompting MoneySavingExpert.com founder Martin Lewis to urge consumers to 'get off the Energy Price Cap right now'.
The current situation is complex, with some quick fixes still available at around 14% cheaper than the Price Cap. However, there's a risk that these deals may disappear quickly as energy firms reassess their prices. Additionally, locking in a deal now means you'll benefit from a reduced rate on 1 April, as the government is changing how energy bills are structured, which will lower unit rates for everyone.
It's important to note that the Energy Price Cap only applies to Standard Variable Tariffs. If you're on a fixed-rate deal, an EV tariff, or a time-of-use tariff, you're not affected by the Price Cap. While there's always a risk of a supplier going bust, your credit is protected, and you'd be moved to a new supplier, potentially ending up back on the Price Cap.
Martin Lewis emphasizes that the focus should be on securing a cheap fix, rather than any deal. With the situation in the Middle East uncertain, it's a good idea to act now to ensure you're getting the best possible rate, even if it turns out to be a wise decision in hindsight.
